So you want to quit your job and be a full time entrepreneur. Well kudos to you! Being and entrepreneur can be a wonderful thing especially if you feel you are truly living your dream and following your passion. Now aside from the thrill of going into business for yourself there are a few very important details that you need to consider when it comes to “INCOME” and your finances.
I am going to be very honest with you about this starting a business and becoming an entrepreneur is amazing but you have to do some pre-planning and if you have a partner than they have to be on board. If you really want to make it work than work with your partner and get their approval. If you are single than planning is even more important as it is only you with whom you have to rely on.
Now let me ask you some questions so you can determine where you are in this…
- Do you know your monthly expenses? Exactly how much you need to in order to pay all your bills and eat?
- Do you have any credit card debt currently? If so when do you plan to get the debt paid off?
- Do you have a good size emergency fund? Enough to sustain you in the lean months and enough to be able to pay cash for your business start up supplies and marketing?
- Do you have the support of your family? Do they understand that there will be some sacrificing from everyone in order for this to work?
- Are you fully prepared for the worst case scenario which could possibly be no income for a while? Prepare yourself for this.
- Are there some expenses that you can cut back on; little extras that can save you money during the building stage? If so do it now, save as much as you can.
Keep these questions top of mind as you contemplate whether now is the time to be a full fledged entrepreneur. I know the market place is constantly telling us to “invest in ourselves, if you don’t have the money put it on your credit card”. I am here to tell you yes Invest in yourself but pay cash for it. Do not go into credit card debt. If you truly believe in something then you will be willing to save for it, put aside money for it, cut back on some other things in order to save for something better. Money can make or break you. I have had different businesses during my life thus far and I have only borrowed what I knew I could pay back in a month. Debt and I do not do well together and I know this. Money is a powerful energy and no matter how strong your desire is to quit your job and go solo, plan ahead and don’t get caught up in the hype. Be purposeful and powerful by planning.